Section 22:
Disqualifications for directorship of Central Board or membership of Local Boards or Committees.
(1) No person shall be qualified to be a director of the Central Board or a member of a
Local Board or of a Local Committee if--
(a) he holds the office of director, provisional director, promoter, agent or manager of any
banking company already established or advertised as about to be established; or
(b) he is a salaried officer of Government not specially authorised by the Central Government to
be a director or member; or
(c) he has been removed or dismissed from the service of Government on a charge of corruption
or bribery; or
(d) he holds any office of profit under the State Bank other than the office of
chairman, 1*** 2[managing director] or 3[4[Chief General Manager or legal or technical adviser]]; or
5[(da) in the case of a director appointed under clause (ca) or clause (cb)
6*** of section 19,--
(i) he is not serving in the State Bank or has not been serving in it for a continuous period of
at least five years; and
(ii) he is of such age that there is a likelihood of his attaining the age of superannuation
during his term of office as a director; or]
(e) he is or at any time has been adjudicated an insolvent or has suspended payment of his debts
or has compounded with his creditors; or
(f) he is declared lunatic or becomes of unsound mind; or
(g) he is or has been convicted of any offence involving moral turpitude; or
7[(h) in the case of an elected director, he is not registered as a holder in his own right of
unencumbered shares in the State Bank, either as sole holder or as first named holder when jointly
held, of a nominal value of at least five thousand rupees.]
(2) No two persons who are partners of the same firm or are directors of the same private company or
one of whom is an agent of the other or holds a power of attorney from a firm of which the other is a
partner may be directors of the Central Board or members of the same Local Board or Local Committee at
the same time.
(3) The appointment, nomination or election as director or member of a Local Board or of a Local
Committee of any person who is a member of Parliament or the Legislature, of any State shall be void
unless within two months of the date of his appointment, nomination or election he ceases to be a member
of Parliament or the State Legislature, and if any director or member of a Local Board or of a Local
Committee is elected or nominated as a member of Parliament or any State Legislature, he shall cease to
be a director or member of the Local Board or of Local Committee as from the date of such election or
nomination, as the case may be.
8[(4) In this section,--
(a) “banking company” has the same meaning as in the 9[Banking Regulation Act, 1949
(10 of 1949)];
(b) “manager” means the chief executive officer, by whatever name called, of a Banking
company;
(c) “private company” has the same meaning as in the Companies Act, 1956 (1 of 1956)].
Notes:
1. The word “vice-chairman” omitted by s. 16, ibid. (w.e.f 15-9-2010).
2. Subs. by Act 26 of 1959, s. 2, for “or managing director” (w.e.f. 11-6-1976).
3. Ins. by Act 35 of 1964, s. 7 (w.e.f. 1-12-1964).
4. Subs. by Act 48 of 1973, s. 7, for “secretary and treasurer” (w.e.f. 26-6-1974).
5. Ins. by Act 48 of 1973, s. 7 (w.e.f. 26-6-1974).
6. The words, brackets and figure “of sub-section (1)” omitted by Act 3 of 1994, s. 13 (w.e.f. 15-10-1993).
7. Subs. by Act 27 of 2010, s. 16, for clause (h) (w.e.f. 15-9-2010).
8. Ins. by Act 26 of 1959, s. 2 (w.e.f. 28-8-1959).
9. Subs. by Act 3 of 1994, s. 13, for “Banking Companies Act, 1949” (w.e.f. 15-10-1993).